I think its convenience and cost James .. old days we used to re-ring/rebuild engines all the time .. I well remember changing some main bearings on a ford consol with 2 wheels on the verge and the sump dropped without draining the oil !! It was what you did !!
Labour charges at upwards of £75 an hour would make a full engine out/strip/rebuild/refit so expensive that most garages say stick a new engine in its cheaper and you get a warranty. Add to that the fact that many garages do NOT employ mechanics/engineers but partially trained spanner monkeys who haven't got a clue beyond component replacement as told by the idiots lantern in the corner .. and it knows nothing either
Engines are built on stands and many jobs are not designed to be done
in-situ, our own spark plugs/ HBV being examples of how non-mechanic-friendly the modern design is .... and when you have to dismantle 1/2 a car to change a light bulb ... as some citroens now do ...
Lastly, manufacturers are deliberately using more and more "special tools" to do simple jobs .. the cost of these, and the training to use them, presents the old-fashioned garage with a major problem ... is it worth buying tools you may only ever use once
You can't charge the cost to the customer...
The days when a box of BSF/Whitworth spanners would do 99% of all jobs are, unfortunately, long gone ..